AR Balancing Issues

Balancing Accounts Receivable Daily:

• A/R should be balanced each day after posting sales and cash.



• Note: these procedures can be used to balance daily):
  • Use the previous end-of-month A/R total and add in the total invoice amount from the sales posting journal.
  • Subtract the total change to A/R from the cash posting register.
  • In Task #32: System Management Functions, Sub-task #1:Display total value of A/R Open, enter:.
    • Starting date: Always use date 01/01/70.
    • Ending date: Use the date sales and cash were posted for.
    • Include Retail Accounts? (Y/N): Defaults to N. Always answer Y for YES.
    • Date Basis:(1)Due/(2)Document: Use #2 Document.
    • Please enter - Starting division/Ending division: Enter for ALL or if balancing divisions individually, use division number.
    • The A/R totals will then be calculated. The screen will show: sales value, payment value, credits value, finance charges, debits value, service value, refunds value, deposits value, and Total value. NOTE:The only amount to be concerned with is the Total value at this time.
  • The total value should equal the calculated totals. Previous end-of-month A/R Balance + Total invoice from sales posting journal - Total change to A/R on the Cash Posting Register = Total Value from Display Total A/R Open.
  
  
  
  • DAILY: Keep a note book specifically for writing down daily total value of A/R. Do this each day. Use the new total of A/R as your starting figure.

**If you do not balance:

• Check the postings to see if there are any zero documents #'s. There should NEVER be any zero document #'s. If the zero document is for a zero amount, it may be deleted from the A/R open, but be VERY careful.
• The dates on the postings should be only the one day that was posted.
• Check for invalid Gl account messages. Find the item on the invoice that is the cause of the problem and fix the GL # in Inventory Control (Module 5), Item Master (Task 17).